May. 11, 2012 (China Knowledge) – Industrial and Commercial Bank of China or ICBC<601398
>, the world's biggest lender by market value, announced it had received approval from The Board of Governors of the U.S. Federal Reserve System to acquire a 80% stake in East Asia Holding Inc., a wholly-owned subsidiary of Bank of East Asia headquartered in Hong Kong, sources reported.
The Chinese lender had inked an agreement with BEA and East Asia Holding Company Inc., on Jan. 21, 2011.
According to agreement, ICBC will pay US$140 million for the stake and become the controlling shareholder of East Asia Holding Inc.
The acquisition will further expand ICBC's retail banking business in U.S. and broaden its banking services, said Jiang Jianqing, Chairman of ICBC.
As China's largest bank, the total assets of ICBC stands at US$2.5 trillion. In the first quarter of this year, the lender saw its operation revenue increased 15.11% year-on-year to RMB 131.02 billion with a net profit of RMB 61.37 billion, up 14% year-on-year.